Fundamental Market Analysis for April 25, 2025 GBPUSDAn event to watch out for today:
11:00 EET. CHF - The head of the SNB Martin Schlegel will deliver a speech
GBPUSD:
The GBP/USD pair is pulling back from its recent gains, hovering around 1.3290 during the Asian session on Friday. The pullback comes amid a strengthening US Dollar (USD), helped by a Bloomberg report that China may suspend a 125% tariff on some US imports, including medical equipment, ethane and aircraft leasing.
Sources familiar with the matter said officials are particularly scrutinising the possibility of removing tariffs on aircraft leasing. China's Ministry of Finance and General Administration of Customs have not yet commented. Further support for the dollar comes from optimism around trade talks with the US. Reuters reports progress in preliminary talks with key Asian allies, including South Korea and Japan.
The US Dollar Index (DXY), which tracks the dollar against six major currencies, is recovering previous losses and is trading near 99.80. However, the dollar faced headwinds after mixed labour market data. The US Department of Labour reported that initial jobless claims rose to 222,000 for the week ended April 19, slightly above expectations, while jobless claims fell 37,000 to 1.841 million for the week ended April 12.
In the United Kingdom (UK), the GfK consumer confidence index fell to -23 in April - its lowest level since November 2023 - amid rising living costs and growing concerns about global trade, missing forecasts of -22. Traders now await UK retail sales data and a final reading of the US consumer sentiment index from Michigan later in the North American session.
Trading recommendation: SELL 1.3270, SL 1.3300, TP 1.3170
